GBP/USD 1.6508 - 4 May 2011

GBP/USD Open 1.6491 High 1.6662 Low 1.6453 Close 1.6484

On Tuesday Pound/Dollar decreased sharply on lower but not unexpected CIPS manufacturing index, with 200 pips, in line with the negative Interbank sentiment at nearly -2%. The Cable depreciated from 1.6662 to 1.6462 yesterday, closing the day at 1.6484. Today the British Pound weakened further, dropping down to 1.6453. On the 1 hour chart the upward channel was broken downwards, while on the 3 hour chart the upward channel is on hold. First resistance is yesterday's peak at 1.6662. Break above it should extend the bullish movement further towards the 1.6780. The nearest support is today's bottom at 1.6453. Going bellow it should extend British Pound's reduction further down towards next downward objective 1.6338. Today are UK Nationwide house price index, M4 money supply and Consumer credit, at 6 and 8:30 GMT respectively. Quotes have just crossed up the 20 and are moving bellow the 50 EMA on the 1 hour chart, indicating short term bullish and medium term bearish pressure. The value of the RSI indicator is thinly positive and inclining upwards, MACD is negative and quiet, while CCI has crossed up the 100 line on the 1 hour chart, giving overall neutral to light long signals.
Technical resistance levels: 1.6662 1.6780 1.6900
Technical support levels: 1.6453 1.6338 1.6200

Trading range: 1.6495 - 1.6670
Trend: Upward
Buy at 1.6508 SL 1.6478 TP 1.6558

Already made +21 pips profit on GBP/USD today from the following signal:
5:28 GMT+1 Sell GBP/USD at 1.6471 SL 1.6497 TP 1.6411, exit sent at 7:21 GMT+1.
Today so far +112, yesterday +137, as shown in details at